Illustrate modern method of measurements, Financial Management

Assignment Help:

Q. Illustrate Modern Method of Measurements?

Holding Period Yield: The holding period yield is one of the modern techniques on Measuring return. It serves two purposes:

a) It measures the total return per rupee of the original investment.

b) Through this method, comparisons can be drawn of any asset's expected return.

The holding period yield can be used for any assets. For example, return from saving accounts, stocks money, real estate and bonds can be compared through this measure. The formula for the holding period yield is: Income payment received during the year in rupees + Capital change for the period in rupees Price in rupees of in original investment at the beginning of the period

Bonds Holding Period Yields

The holding period yields for bonds are measured in the following way: BHPY= Income payment during Period t + Change in price during period Price at the beginning of the period of  BHPY or Bond Holding Period Yields = It + P. Pt Contributing to risk are price and interest. All investments are risky, whether in stock or capital 1)1 a market or banking and financial sector, real estate, bullion gold etc. the degree of risk, however, varies on the basis of features of assets, investment instrument,. mode of investment or issuer of security etc.


Related Discussions:- Illustrate modern method of measurements

Other types of bonds, Various other types of bonds are- 1. Domestic Bond...

Various other types of bonds are- 1. Domestic Bonds 2. Foreign Bonds 3. Euro Bonds  4. Global Bonds 5. Floating Rate-Bonds

Calculate the maximum price of machine, Silvana Zhang of Sajjad Jafri & Geo...

Silvana Zhang of Sajjad Jafri & Geopeng Li Limited is considering purchasing a new widget making machine. She would like to know the maximum price she should pay for the new machin

Tax consideration affect cost of debt and cost of equity, How do tax consid...

How do tax considerations affect the cost of debt and the cost of equity? As interest on debt is tax deductible to the issuing firm, as much higher the tax rate the lower the aft

Define primary advantage to a corporation of investing, What is the primary...

What is the primary advantage to a corporation of investing some of its funds in working capital? By investing in working capital a firm acquires the liquidity it requirements he

Determine the working capital decision, Determine the Working Capital Decis...

Determine the Working Capital Decision Investment in current assets is a major activitythat a finance manager is engaged in a daily basis. How much inventory tokeep, how much

Define accumulated depreciation, What is accumulated depreciation? Depr...

What is accumulated depreciation? Depreciation is the allocation of an initial cost over time of asset. Whereas the term accumulated depreciation is the total of all the deprec

Calculate roe when roe may be calculated more simply, Why would an analyst ...

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain. In fact, an analyst wouldn't use the Modified Du Pont eq

What is the role of a broker in security transactions, What is the role of ...

What is the role of a broker in security transactions? How are brokers compensated? Brokers manage orders to sell or buy securities. Brokers are agents who deal on behalf of an

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd